Entrepreneurial decision-making : assessing the influence of creativity and imagination on effectuation and causation processes of German entrepreneurs

The purpose of this study is to investigate the effect of creativity and imagination on the decision-making processes of entrepreneurs. In this context, the two decision-making approaches causation and effectuation are central to this research. Causation implies the focus on a predefined goal, which is achieved by selecting and combining the right resources. Effectuation logic, however, refers to an opposing approach in which the given means are taken in order to select between possible effects that can be created with the given means. Previous and recent literature on causation and effectuation revealed that the need for further investigation of underlying factors has emerged. For the execution of this study, a nonexperimental quantitative research design is chosen. Therefore, the unit of observation are individuals, in total 97 entrepreneurs that are based in Germany. Results of the study indicate that neither creativity nor imagination is significantly correlated with the causation/effectuation approach. Furthermore, the research has led to the conclusion that there is no statistically significant moderating effect of imagination on the relationship between creativity and effectuation/causation. The study poses a contribution to the existing literature on effectuation and causation and provides novel insights into the positioning of creativity and imagination, which are considered highly influential character traits in entrepreneurship. Further research should follow up on the influence of other variables that are associated with the cognitive processes of an entrepreneur. In this regard, it is also recommended to execute similar research in other countries in order to achieve a cross-country comparison.